Economists React: China’s Lending, Investment Slow

By

Richard Silk

Aug 13, 2014 6:09 am ET

Accustomed to vigilantly watching for signs of excessive debt, observers of China’s economy got a shock when July’s statistics came out Wednesday: the lowest pace of credit creation since 2008. Even stranger, the broader measure of credit known as total social financing fell below the level of bank loans, indicating net repayments in the less transparent “shadow banking” realm.

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